Bitcoin Trading Reaches All Time High in Venezuela Amidst Ongoing Economic Collapse

Bitcoin weekly trading volumes reached above 2,000 BTC (about $6.8 million) on peer-to-peer (P2P) exchange LocalBitcoins during the week ending Feb. 2.The recorded trade volumes on LocalBitcoins are just a fraction of overall estimated Bitcoin trading by Venezuelans. As TrustNodes reports, a large amount of trading is taking place on centralized exchanges located in neighboring countries, such as Colombia and Brazil.Despite having the largest oil reserves in the world, Venezuela’s economy has reportedly fallen by 47 percent since the end of 2013. The economic situation in the country was worsened by the sanctions by the United States adopted in 2017, which targeted the regime of Venezuelan president Nicolás Maduro. Last month, the U.S. announced additional sanctions against the country’s state-owned oil company, PDVSA.On Jan. 31, Venezuela officially adopted a new bill on crypto regulation that introduces the concept of a sovereign crypto asset, which represents any currency issued in Venezuela and authorized by the government. The bill also lists required licenses for mining and crypto exchanges businesses, and introduces fines for unlicensed activities.